Know-How Exchange : Research/Metrics

I wish that rule applied for some of the project revenues I have managed in the past. It seems like a good model to orchestrate real incentive.

We pay our account executives a flat salary and price all of our engagements based on the effort needed to execute. An account executives salary is not tied to dollars under management it's tied to experience and the ability to deliver. Incentive pay for everyone is tied to overall company profits. An account executive can't do their job effectively without a solid team of people behind them. Incentive pay based on company profits fosters team work from everyone.

Part of the AE's job is to retain and up sell business to existing clients. If they don't do that they aren't delivering the results needed to keep their job. Not trying to sound harsh by saying that but if they can't deliver we try to find them other jobs in the company.

Thanks for opportunity to share my thoughts. Please let me know if I need to clarify anything.

Great question.. with an almost impossible answer.

The difference is the types of accounts, are they servicing accounts that have been in house for a long time or are they bringing in new accounts... I believe you pay more to the guy who brings in new accounts.

The perfect recipe does not seem to exist.
When running a promotional company I actually set up account managers' total salaries along with their respective support staff at 33% due to the accounts they managed. Another 33% went to cover other company costs and the balance to the bottom-line.
I didn't make any differentiation as to whether the accounts were nurtured or just acquired.
Within each account group there were people responsible as per "labor division" i.e. prospecting and farming.
Adam

I agree with the others that there are many viable approaches here. Salary plus invcentive based commission is pretty common but I've found that if you incent the account staff based on pre-set and account adjusted objectives you can account for their different client loads.

I've used a graded scale of targets based on experience with specific accounts. Essentially, keep and grow the biz and you get more compensation.

I've been pleased with the results and the AEs seemed to like it as well.